Buy Jyothy Labs Ltd For Target Rs. 507 By Sushil Finance
Highlights from the Quarter (Q2FY26):
Jyothy Labs Ltd (JLL) reported a flat quarterly net revenue of Rs.753.0cr for Q2FY26, marginally higher by 0.9% YoY and lower by 2.2% on a QoQ basis. The company reported an EBITDA of Rs.135.3cr for the quarter vs Rs.150.8cr for the same quarter in the previous year and Rs.143.6cr in the preceding quarter. Subsequently, the company posted a net profit of Rs.87.8cr for the quarter.
Gross Margins stood at 48.1%, compared to 50.2% in the same period last year. This was lower by 210 basis points year-on-year, mainly due to input cost pressure, price reductions, and consumer offers in select categories. This subsequently impacted EBITDA margins for the quarter
Coming to the product categories, Fabric Care delivered an encouraging performance in both Main Wash and Post Wash. Jyothy Labs expanded its fabric care portfolio into a premium niche with the launch of Dr. Wool, an expert liquid detergent specifically for Woollens and Delicates. The performance of the personal care segment was negatively impacted by the GST transition announced in September 2025. This transition affected key products, including toilet soaps and toothpaste, which together account for about 11% of the business. The market disruption and channel destocking due to price resets contributed to the flat growth in the segment.
The new brand Jovia, along with Margo, is expected to start delivering improvements from Q3FY26 onwards.
Future outlook:
* Management remains cautiously optimistic about a gradual improvement in demand and further stability in commodity prices.
* The company expects the GST impact normalization and improving demand to lift sequential growth.
* The margin performance is expected to be supported by benign commodities, the scaling of premium launches, and better mix.
* The Operating EBITDA margin is expected to remain in the 16%–17% range in the second half of FY26.
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